2023/12/07

Claiming Travel Expenses Against Child Maintenance Payments

How is mileage calculated for child maintenance?




Can you claim travel expenses through the Child Maintenance Service?  Yes you can.  Claiming travel expenses for mileage can be done via the portal.  However you can only claim travel costs if you are a paying parent and have an open Child Maintenance Service case.

How Does It Work?


The Child Maintenance Service gives paying parents a discount off the maintenance payable, in order to take into account expenses for travel, such as train tickkets, and mileage costs for fuel.  

To claim, you need to ask for a special expenses variation.  The minimum claim is £10 per week.  So you will not be able to claim for a few miles.

Unlike travel expenses for work, you dont actually receive the money.  It is simply discounted off of your gross income, meaning that you pay slightly less child maintenance to the receiving parent.  The mileage cost per mile is significantly lower than the mileage that HMRC allow you to claim.  

So someone with a gross income of £200 per week, eligible for £10 per week travel, would see their gross income reduced to £190 per week, with calculations for maintenance assessed on the slightly smaller amount of £190.

The cost of the journey it is calculated using the HMRC advisory fuel rates which are not very generous.  They certainly dont cover the cost of running a car per mile.  The HMRC advisory rate used in the CMS calculation does change, in line with average prices on the petrol forecourts.  Rates can go up and down, and are recalculated every 3 months.  All the quarterley rates are shown in the tables at the end of the page.  

Example Calculation

Someone travels 100 miles per week and drives a 1400cc petrol car.

The rate for this calculation is 14p per mile.  

14p x 134 miles = £18.76.  So above the threeshold for a weekly claim.

They have 2 children, so CMS is 16% of income.

Assuming they do 52 journeys per year, annual mileage claim is 7000 miles.

7000 miles x 14p = £980 of travel.

That £980 is deducted from their income for the year.  In this case they earn £30,000 per year.

So a £980 deduction is applied to their salary.  So now their salary starts off as £29,020.

So originally on 30K their CMS at 16% was £400 per month.

So now on £29,020, their CMS of 16% is now £386.93 per month.

A saving of £13.06 per month or £3.00 per week.


How Do You Claim Travel Expenses


You claim for travel using the CMS portal.  You will need to be registered to use the portal.  Currently its not possible to register online, so you will need to call the CMS to set up your login details.  Be warned, CMS telephone lines warn that it could take an hour to get through.

Latest Rates



Rates Effective from 1 Dec 2023.

Fully electric cars are paid at a rate of 9p per mile.  Hybrids are paid based on the fuel  ie unleaded

Engine sizePetrol — rate per mileLPG — rate per mile
1400cc or less14 pence10 pence
1401cc to 2000cc16 pence12 pence
Over 2000cc26 pence18 pence

Engine sizeDiesel — rate per mile   
1600cc or less13 pence
1601cc to 2000cc15 pence
Over 2000cc20 pence

Previous Rate Effective from September 1st 2023 until 30 November 2023

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 10 pence
1401cc to 2000cc 16 pence 12 pence
Over 2000cc 25 pence 19 pence
Engine size Diesel — rate per mile
1600cc or less 12 pence
1601cc to 2000cc 14 pence
Over 2000cc 19 pence

From 1 June 2023 to 31 August 2023
HMRC Advisory Rates Were:

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 10 pence
1401cc to 2000cc 15 pence 12 pence
Over 2000cc 23 pence 18 pence
Engine size Diesel — rate per mile
1600cc or less 12 pence
1601cc to 2000cc 14 pence
Over 2000cc 18 pence

From 1 March 2023 to 31 May 2023

HMRC Advisory Rates Were:

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 13 pence 10 pence
1401cc to 2000cc 15 pence 11 pence
Over 2000cc 23 pence 17 pence
Engine size Diesel — rate per mile
1600cc or less 13 pence
1601cc to 2000cc 15 pence
Over 2000cc 20 pence

From 1 December 2022 to 28 February 2023

HMRC Advisory Rates Were:

Engine size Petrol — rate per mile LPG — rate per mile
1400cc or less 14 pence 10 pence
1401cc to 2000cc 17 pence 12 pence
Over 2000cc 26 pence 18 pence
Engine size Diesel — rate per mile
1600cc or less 14 pence
1601cc to 2000cc 17 pence
Over 2000cc 22 pence



Previous Rates from one year ago in 1 Sep 22

As of 1st Sep 2022 the rates are shown in the table below.

Petrol

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 51.9 174.2 pence 791.9 pence 15.3 pence 15 pence
1401 to 2000 44.1 174.2 pence 791.9 pence 18.0 pence 18 pence
Over 2000 28.8 174.2 pence 791.9 pence 27.5 pence 27 pence

Diesel

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1600 60.7 185.2 pence 841.8 pence 13.9 pence 14 pence
1601 to 2000 49.8 185.2 pence 841.8 pence 16.9 pence 17 pence
Over 2000 38.8 185.2 pence 841.8 pence 21.7 pence 22 pence

LPG

Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate
Up to 1400 41.5 83.7 pence 380.5 pence 9.2 pence 9 pence
1401 to 2000 35.3 83.7 pence 380.5 pence 10.8 pence 11 pence
Over 2000 23.0 83.7 pence 380.5 pence 16.5 pence 17 pence

Electric Cars

The advisory electricity rate for fully electric cars is currently 9 pence per mile.  Hybrid rates are based on the non electric fuel used.

Source .gov.uk website.

Mileage allowances are not paid to receiving parents.  Paying parents wishing to claim need to make it clear that they want to claim the discount.  It wont simply be offered or applied automatically.




No comments: